3 Ways to Boost Your Credit Score Before House Hunting

If you’re planning to buy a house in Canada, having anything less than an exceptional credit score can significantly limit your ability to qualify for a mortgage, especially in some of the pricier cities. Therefore, it is recommended to address your credit score before starting house hunting. Not only will this increase your chances of getting pre-qualified, an important step for potential buyers, but it will also give you a better understanding of what you can afford and reduce your stress levels.

To help you boost your credit score, here are a few tips:

1. Pay your credit bill every month, ideally as much as you can. Paying only the minimum balance will only cover the interest, and it will take longer for you to decrease your debt and increase your credit score.

2. Lower your credit utilization, which refers to the ratio of credit available to you compared to credit you've used. If you have maxed out your credit card or have used a high percentage of the available credit, this will negatively impact your credit score. To improve this, try paying off more of your credit balance or applying for a credit increase.

3. Be diligent about paying your household bills on time and in full. To avoid missing any payments, consider setting up automatic withdrawals.

By following these tips, you can improve your credit score and increase your chances of qualifying for a mortgage to buy your dream home.